Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Almost as quickly as it started, Shiba Inu's most recent attempt at recovery has faltered. SHIB has already given up a significant amount of its gains following an incredible 40% price increase driven by a 12-fold increase in trading volume. In addition to stopping what was expected to be the token's third-biggest recovery rally of 2026, the rejection essentially canceled a mini-golden cross that many traders were anticipating as an early bullish signal.
Unexpectedly shallow SHIB recovery
At first glance, the rally appeared convincing. With one of the biggest daily volume spikes of the year, SHIB soared through its short-term moving averages. Such volume expansions give bulls hope that the protracted downtrend may finally be coming to an end because they frequently signal new capital entering the market rather than just short-covering.
But the excitement quickly subsided. After the breakout, sellers aggressively intervened near the 100-day EMA at $0.00000503, rejecting the price before SHIB was able to firmly establish a foothold above the moving average. The token has since fallen back below that barrier, indicating that buyers were unable to sustain the initial spike. The expected crossover between the 20-day and 50-day exponential moving averages is one of the main casualties of the decline.
A bullish mini-golden cross, which frequently indicates growing short-term momentum, was about to form between the two averages just one day prior. Instead, the reversal has caused the gap to widen once more, postponing any technical confirmation that a sustainable trend reversal is taking place. An equally significant story is conveyed by volume.
Volume declines too quickly
Although there was about 12 times as much trading activity during the initial breakout, today's session saw a sharp decline in volume as the price retreated. This combination usually indicates that the initial buying impulse has already been absorbed, leaving the market searching for new demand before a leg higher can emerge.
Technically speaking, SHIB is currently positioned between significant support and resistance levels. The shorter-term moving averages are still converging at $0.00000448, which is immediate support. At least a portion of the recent breakout structure would be preserved if this zone were held.
But losing it would probably push SHIB back into the consolidation range that predominated for the majority of July. Before bulls can realistically challenge the 200-day EMA near $0.00000602, which continues to define the larger bearish trend, it is still necessary to recover $0.00000503. Momentum has also significantly decreased.
The rapid loss of buying pressure following the explosive move is reflected in the RSI's retreat from overbought territory toward neutral levels. As of right now, SHIB's biggest attempt at recovery in months has stalled before a complete reversal could occur.
Dan Burgin
U.Today Editorial Team
